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We haven't able to confirm this, but we've heard it now from a couple of people: Hitachi, the Japanese conglomerate, is talking to Toshiba and Fujitsu about forming a new company dedicated to hard drives and storage systems.

The new company would combine the limping hard drive divisions of Hitachi and Toshiba as well as some of the storage systems technology from Fujitsu. Each would own a third.

The three-way deal is being proposed as an alternative to a private equity buyout. Hitachi has been in discussions with equity firm Silver Lake and others about spinning off its money-losing hard drive group, according to sources and news reports. Those talks, however, have not gone smoothly, sources familiar with the discussions said.

For one thing, Silver Lake has a long association with Seagate Technology. Silver Lake took Seagate private years ago, restructured the company, and spun it out again. Seagate is now profitable and growing. However, the firm and the company have stayed friends. Silver Lake founder Jim Davidson tendered his resignation from Seagate's board in December.

A bigger problem, though, might be cultural. Hitachi is still run like a more traditional Japanese company. That is, the company is somewhat wary of outsiders, but is likely more willing to trust other Japanese partners. One observer noted that a Japanese conglomerate seems a better fit than other proposals that have floated about. Another observed that even though Silver Lake and Hitachi have translators, they probably still aren't speaking the same language.

The Nikkei Business Daily has reported that Hitachi would likely sell less than 50 percent of its stock to Silver Lake. A minority would prevent Silver Lake from exerting control. For a firm that earns money by repackaging and reselling companies, that's a deal killer.

Either way, "something has got to happen," said one former hard drive executive. Hitachi eliminated a lot of executives in an October shakeup. It has also continued to lose ground against Seagate and Western Digital, two drive companies that currently are profitable.

Hitachi got into drives when it bought IBM's storage division in 2002.

If a deal occurs, it will likely occur by April 1, the beginning of the new business year in Japan.

In December, Hitachi said that it wants to improve its hard drive business, but has not decided to sell it. It has not formally commented since. Toshiba and Fujitsu have yet to return requests for comment.

CNET News.com's Dawn Kawamoto contributed to this report.

LAS VEGAS--This PC is made out of corn. And no, you cannot eat it.

It's actually the third generation of the Biblo PC from Fujitsu, which showed off the laptop at the Consumer Electronics Show in Las Vegas. The inside is a normal PC, but the outside casing is made out of material that's 50 percent plant-based materials, and 50 percent regular plastics. To make it, they take regular ears of corn, process it down to corn starch, and turn that into a polymer alloy. Fujitsu says it cuts down on carbon dioxide emissions during the manufacturing process by 15 percent. Unfortunately, the PCs are only on sale in Japan.

The casing of this Fujitsu PC is made half out of corn-based bio-materials and half out of traditional plastic. Fujitsu says it cuts down on carbon dioxide released during manufacturing by 15 percent.

(Credit: Erica Ogg/CNET News.com)

Though it's biodegradable on the outside, on the inside, it's a normal PC. Fujitsu sells the corn-based PC for the same price as a regular plastic-encased PC, despite a more expensive manufacturing process.

(Credit: Erica Ogg/CNET News.com)

What's even more interesting is that Fujitsu sells the corn-based PC for the same price as a regular plastic-encased PC, despite a more expensive manufacturing process. The model pictured here is pretty full-featured, so the equivalent price is about $2,000.

Fujitsu is currently considering whether to release a corn-based PC here in the U.S., according to the senior vice president of marketing for Fujitsu, Ryan McCormack. But it's still up in the air.

Even if it did come here, it wouldn't have to be made out of corn to achieve the same results. According to McCormack, potatoes and castor oil offer the same energy-saving benefits as corn.

A mainstream Fujitsu 2.5-inch hard drive for mobile or compact PCs

(Credit: Fujitsu)

Fujitsu has squeezed a notch more capacity into its 2.5-inch, 5,400rpm mobile drives, announcing its MHZ2 BH family with a maximum capacity of 320GB on Tuesday.

The family is designed for use in mobile or compact PCs and in consumer electronics products. It also features 8MB of buffer, a 3 gigabit-per-second SATA interface, and power consumption of 1.9 watts when reading or writing data.

The new drive will be available in February; Fujitsu didn't release pricing. The earlier MHY2 BH line topped out at 250GB and had a slower 1.5Gbps SATA (serial ATA) interface.

LifeBook A6110: Autumnal glow not included

(Credit: Fujitsu)

Hot on the heels of the $799 LifeBook V1010, Fujitsu has announced the $849 LifeBook A6110. Like its sibling, the A6110 features a 15.4-inch display and built-in DVD burner; its higher cost can be attributed largely to its current-generation Core 2 Duo processor and Mobile Intel GM965 Express chipset. Other key features of the 6.6-pound A6110 include integrated Intel X3100 graphics, a large 160GB hard drive, five USB 2.0 ports, a built-in Webcam, and a slot for both PC Cards and ExpressCards. Higher-end models include Fujitsu's unique point-and-write touchpad.

The LifeBook A6110's base configuration includes just 1GB of RAM, which is a little less than we'd prefer on a Windows Vista machine; an extra 50 bucks will double your RAM and add 802.11n compatibility, and it may be worth the cost. We're expecting a review unit in CNET Labs soon and will give you the full report once we've run it through our benchmarks.

In a paper released today (click for PDF), Neal Krawetz of Hacker Factor Solutions looks at the probable causes behind recent large-scale data thefts at TJX, OfficeMax and other retail stores. He concludes that "point-of-sale terminals and branch servers store credit card information in ways that are no longer secure enough."

Although Krawetz's paper doesn't reveal any new exploits against point-of-sale (POS) systems, he does fault practices still being used by various vendors. In an e-mail to CNET News.com, Krawetz wrote: "I believe that the vulnerabilities behind the January 2006 compromise of a Fujitsu Transaction Solutions national branch server were not limited to OfficeMax. The exploits could have happened to any vendor's system (IBM, NCR, Wincor Nixdorf, etc.) and not just FTS. It also could have happened to any retailer." Attempts by News.com to contact Fujitsu were unsuccessful.

Krawetz says that retail POS systems typically include a card reader, a transaction unit and a branch server. He says that the traffic between the retailer and the credit card companies is secure. The transaction often takes place at the cash register with the customer standing by.

Krawetz says there are vulnerabilities in the password system of the individual transaction units that have been known since 1992, but exploitation requires physical access. POS systems are often in highly visible parts of a store, and short of someone stealing the transaction unit itself, the theft risk here is low. In 2005, Verifone addressed some of these vulnerabilities by issuing a new V* series transaction unit, retiring the older Tranz model.

Branch servers are the targets of sophisticated attacks and Krawetz says it's the communication between the cash register and the branch server that is not secure. Branch servers often collect data from individual cash registers and may store the data locally, regionally or nationally. Sometimes the data from cash register to branch server is transmitted wirelessly over unencrypted networks.

In 2005, Paul Timmins, Adam Botbyl and Brian Salcedo were sentenced for wardriving cash register data being transmitted to a branch server from a Michigan Home Depot.

In today's report, Krawetz argues that large, national stores use coded receipts not for security but to allow returns and exchanges at any store. That means there must be large a national database from which the store pulls back the original credit card data. So if that national store allows 90-day returns and, Krawetz speculates, if each store handles 2,000 transactions a day and there are 1,300 stores nationwide, that's more than 235,000,000 cards that need to be stored. Krawetz admits that some customers will return during that 90-day period, so assuming there's 75 percent customer loyalty, that's still about 54 million credit cards being stored in a branch server somewhere. That number roughly matches the 45 million credit cards stolen from TJX over a two-year period.

He concludes that retail POS systems have not kept up with technological advancements and seem to be trailing security practices elsewhere by at least a decade. "Why did 'change default passwords' not become standard until 2004? We knew about this for system administration back in 1994."

You've seen picnic ware and household items made out of biodegradable plastic. Now, here's a notebook with a biodegradable chassis.

This Fujitsu LifeBook sports a chassis made from a plastic made from cornstarch rather than petroleum. It costs more, but it's green. Put the chassis in a landfill and it will go away over the course of months. Real plastic will take decades.

It's made of plastic from cornstarch.

(Credit: Michael Kanellos/CNET News.com)

Producing the cornstarch-based plastic, which comes from a supplier, also results in 15 percent less carbon emissions. Those vials (pictured at left) to the side, by the way, show the progress from corn kernels to plastic.

Fujitsu has also used the plastic on cell phones and point-of-sale terminals. The products right now are only available in Japan. Following pollution problems and the oil shock of the '70s, Japan embarked on a somewhat aggressive environmental program. Although environmentalism rises and dips, energy efficiency programs have remained somewhat strong. As a result, Japan remains one of the largest markets and producers of solar power.

You will start to see more stuff like this in the U.S. and Europe, though. The cost of bio-plastic will also decline as companies like Cereplast and agricultural bigwigs like Archer Daniels Midland expand production.

Fujitsu U810 mini-notebook

(Credit: Fujitsu)

You'd be forgiven for classifying Fujitsu's U810 notebook as a slightly clunky ultramobile PC.

After all, it weighs a pound and a half, has the Intel A110 processor used in Samsung's UMPC, and allows for fairly easy and accurate thumb typing. But you'd be wrong. Fujitsu prefers to call it a mini-notebook, mostly because it's essentially a scaled-down version of its other convertible notebooks.

It opens like a notebook, but has a rotating screen, which can be swiveled and locked down like Fujitsu's other Lifebook products. The U810 has a lot of features--biometric security, Webcam, keyboard light, stylus and a touch-screen interface, and some decently sized keys for such a small keyboard. It's equipped with slots for SD cards, compact flash, USB, and has a port for an included Ethernet dongle and can connect to a docking station. It's 802.11 a/b/g and Bluetooth capable, with Wireless WAN (wide-area network) coming in February, courtesy of AT&T.

Fujitsu T2010

(Credit: Fujitsu)

There's also not a lot of choice here. The tiny notebook will only be available in black, and will come with a standard 5.5-hour battery, 40GB hard drive and 1GB of memory. Buyers will have a choice of Windows Vista Home Premium, Vista Business or XP Tablet PC. The U810 starts at $999 and ships September 18.

Fujitsu has also updated its T series line of convertible notebooks. The T2010 is 3.5 pounds with a 12-inch, LED-backlit wide screen. It's designed specifically for tablet use, so the 9-hour battery stays in the front, but the latch is moved nearer to the notebook's swivel hinge.

Fujitsu has scrapped the optical drive so it weighs less. It includes an Intel Core 2 Duo processor, has PC and smart card slots, is Bluetooth-ready, and also will have Wireless WAN in February. The T2010 is slightly more customizable than the U810. Buyers can choose between a wireless chipset from Intel (802.11 a/b/g/n) or Atheros (802.11 a/b/g), and Vista or XP Tablet PC.

The T2010 goes on sale Tuesday, starting at $1,599.

(Credit: Fujitsu)

Where does a laptop end and a handheld computer--or even a really, really smart phone--begin? We have no idea, and we're not sure it really matters. But for those who care, Fujitsu is doing its best to blur the lines.

The "U series" addition to its "LifeBook" line of laptops features ultra-portable machines that are barely an inch thick and weigh less than 1.3 pounds. But you wouldn't necessarily know it by the specs: an 800MHz Intel chip, 20GB hard drive, 512 of memory and a built-in fingerprint reader. All of which beats a 2005 PC we bought by a country mile. The only real giveaway is the size of the U's screen, which measures 5.6 inches.

It's this diminutive size, however, that also allows it to be converted easily into a tablet. Similar to a lot of smart phones now on the market, its screen can swivel around and do a gymnastics-style backflip. The price, however, puts it distinctly in the computer camp, starting at $1,250 on the Japanese market. And one more thing that's similar to laptops is its claim to an 8-hour battery life; we'll be dubious of specs like that no matter what category it falls into.

Every major PC manufacturer is announcing a lineup of new laptops this morning. These systems are all part of Intel's new Santa Rosa platform, which to the laptop-buying public means they'll have either a Centrino Pro or Centrino Duo sticker on them somewhere.

Our colleague Michelle Thatcher will go into further detail on the Santa Rosa specs later today, but for the most part, it involves having one of several new mobile Intel CPUs (From the T7000-series), support for Wireless N networking, Intel's new 965 chipset, and some additional onboard memory--Intel calls it Turbo Memory--for faster booting.

We've compiled a handy list of the biggest system announcements being made today, in case you're looking to be the first on the block with a Santa Rosa laptop (of course, most of this info already leaked last week). Note that while some of these are available immediately, others may not ship until as late as July.

Dell
Latitude D630
This new system, bordering on the thin-and-light category, has a 14.1-inch screen, integrated wireless N, and a smart card reader. Options to be added in the near future include Nvidia Quadro 135M graphics, and solid state hard drives.

Latitude D830
Similar to the D630, but with a more familiar 15.4-inch screen. This is a successor to the Latitude D820, just as the new D630 replaces the, you guessed it, D620.

Latitude D531
Not technically a Santa Rosa system, but we can't let Intel have all the fun today. Dell clearly agrees, and is also launching this budget-minded AMD system, which will also include wireless N as an option.

Gateway
E-475M
This 15-inch business system has a sleek design that'll work for home users as well, plus a cool optional docking station that'll charge a spare battery. Starts at $1,399. Read our full review here.

E-265M
A slightly more portable 14-inch version of the E-475M. Starts at $1,399.Read our full review here.

Lenovo
R61
New addition to the mainstream R-series. Besides the new Santa Rosa CPU and chipset, it also has a new internal roll cage behind the LCD display. Starts at $1,299. Read our full review here.

T61
The Santa Rosa version of Lenovo's high-end T series is thinner and lighter than the R61, and adds Intel's Active Management Technology, which lets IT guys update a system remotely, even if its in a suspended state. Starts at $1,399.

HP
HP Pavilion HDX
What's 15.5 pounds, got a 20-inch screen and is a laptop in name only? HP's hot new Pavilion HDX, that's what. This mobile home theater has a huge screen, a dockable remote control, and should come with a weight belt. Prices start at $2,999, and it should ship around July. Read more about this beast here.

HP Pavilion dv9500t
HP updates its time-tested dv9000 series desktops replacements with the latest Centrino CPUs. Read our full review here.

Sony
VAIO SZ
A Santa Rosa version of the popular 13.3-inch SZ series, a stylish PC alternative to the 13-inch MacBook.

VAIO AR
This is Sony's 17-inch desktop replacement series, so adding the latest T7000-series Intel CPUs, plus an optional Blu-ray drive should make it a mobile home theater that's a little easier on the back than the HP HDX.

VAIO FZ
This 15-inch "entertainment laptop" offers all the new Intel mobile CPUs, plus an optional Blu-ray drive. Starts at $1,400, or $2,000 with Blu-ray--if you think you can really tell the difference between a DVD and a Blu-ray movie on a 15-inch screen.

Toshiba
Tecra A9
Successor to the business-friendly A8 includes options for daft 802.11n and Nvidia's Quadro NVS 130M GPU, plus a spill-resistant keyboard.

Tecra M9
Superseding the existing thin-and-light M series, this new model features the higher-end Centrino Pro sticker for added IT oomph, and the all-important spill-resistant keyboard.

Fujitsu
LifeBook T4220
The thin-and light is a sequel to the T4215 convertible tablet, which we liked very much, thanks to its indoor/outdoor screen and tablet screen that swivels both ways. Adding the new Centrino Duo specs should boost both performance and battery life.

E8410
A 15-inch business laptop that goes for the more IT-friendly Centrino Pro sticker, the E8410 (and the Centrino Duo E9430) features Intel's top-of-the-line 2.4GHz Core 2 Duo T7700 processor and high-resolution screen options, but skips the 802.11n.

LifeBook A6030
A consumer version of the 15-inch E8410 (and a notch up from the LifeBook A6020), with the same high-end CPU, but with only a 1,280x800 screen resolution, and, so far, no 802.11n.

There should be even more laptop launches announced today, so stay tuned and we'll update this list with the most interesting ones.